By Jennifer Chiou
New York, Feb. 29 - HSBC USA Inc. priced $1.56 million of 0% performance tracking securities due Feb. 28, 2013 linked to the HSBC Investable Climate Change Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.
The HSBC Climate Change index consists of up to 50 stocks that derive more than 50% of reported total revenue from climate change-related activities, have a market capitalization of at least $1 billion and a six-month average daily trading volume of at least 0.5% of the minimum market capitalization threshold.
Climate change-related activities covers 19 industry sectors: solar; wind; geothermal/hydro; gas; biofuels; nuclear; integrated power; diversified renewables; agrochemicals; carbon trading; investment companies emphasizing one of the other 18 sectors; fuel efficiency autos, including mining or processing of platinum; energy efficient solutions; building insulation; fuel cells; power storage; water; and waste and pollution control.
The payout at maturity will be par of $10 plus any index return minus a 1.4% annual fee, comprising a 0.75% commission to UBS Financial Services Inc. and 0.65% for a structuring fee to HSBC USA.
UBS Financial Services is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Performance tracking securities
|
| Underlying index: | HSBC Investable Climate Change Total Return index
|
| Amount: | $1,557,000
|
| Maturity: | Feb. 28, 2013
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any index return minus a 1.4% annual fee
|
| Initial index level: | 251.88
|
| Pricing date: | Feb. 26
|
| Settlement date: | Feb. 29
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 1.25%
|
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